2010 Pennsylvania Code
Title 13 - COMMERCIAL CODE
Chapter 4A3 - Execution of Sender's Payment Order by Receiving Bank
4A303 - Erroneous execution of payment order.

     § 4A303.  Erroneous execution of payment order.
        (a)  Issuance of payment order in amount greater than amount
     of sender's order.--A receiving bank that:
            (1)  executes the payment order of the sender by issuing
        a payment order in an amount greater than the amount of the
        sender's order; or
            (2)  issues a payment order in execution of the sender's
        order and then issues a duplicate order;
     is entitled to payment of the amount of the sender's order under
     section 4A402(c) (relating to obligation of sender to pay
     receiving bank) if that subsection is otherwise satisfied. The
     bank is entitled to recover from the beneficiary of the
     erroneous order the excess payment received to the extent
     allowed by the law governing mistake and restitution.
        (b)  Issuance of payment order in amount less than amount of
     sender's order.--A receiving bank that executes the payment
     order of the sender by issuing a payment order in an amount less
     than the amount of the sender's order is entitled to payment of
     the amount of the sender's order under section 4A402(c) if that
     subsection is otherwise satisfied and the bank corrects its
     mistake by issuing an additional payment order for the benefit
     of the beneficiary of the sender's order. If the error is not
     corrected, the issuer of the erroneous order is entitled to
     receive or retain payment from the sender of the order it
     accepted only to the extent of the amount of the erroneous
     order. This subsection does not apply if the receiving bank
     executes the sender's payment order by issuing a payment order
     in an amount less than the amount of the sender's order for the
     purpose of obtaining payment of its charges for services and
     expenses pursuant to instruction of the sender.
        (c)  Issuance of payment order to wrong beneficiary.--If a
     receiving bank executes the payment order of the sender by
     issuing a payment order to a beneficiary different from the
     beneficiary of the sender's order and the funds transfer is
     completed on the basis of that error, the sender of the payment
     order that was erroneously executed and all previous senders in
     the funds transfer are not obliged to pay the payment orders
     they issued. The issuer of the erroneous order is entitled to
     recover from the beneficiary of the order the payment received
     to the extent allowed by the law governing mistake and
     restitution.

        Cross References.  Section 4A303 is referred to in sections
     4A304, 4A402 of this title.